China's Creative Copycats

Whether you view China's shanzai workshops as clever innovators or outright bandits, there's no denying that they're good at what they do. Shanzhai cellphones accounted for about 20% of the global 2G mobile market in 2010, and shanzhai companies like Baidu and Tencent are now emerging as world-class players in age of internet commerce. The name "shanzhai" is a reference to historical warlord hideouts, nestled high in the mountains beyond the reach of government control, and today describes counterfeiters and gadget-makers with a similarly healthy disrespect for the law. To their detractors, the shanzhai are shameless imitators, selling cut-rate knockoffs under names like SQNY electronics, Bucksstar coffee, Blockberry, and Hiphone. To others, they are creatively borrowing and building on available ideas, improving products and adapting them to local markets. The "Nckia" brand name might be a blatant rip off, but the built-in flashlight could be useful in areas without reliable electricity, and who wouldn't want a combination cigarette box and cell phone?

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